60 Questions
Which branch of economics deals with the role of money in the economy?
Monetary Economics
What approach does an economist use to develop hypotheses based on existing theories and test them against empirical data?
Deductive reasoning
What is the primary purpose of economic models?
To predict and understand the interactions and outcomes of economic actions
Which of the following is an example of normative economics?
A policy recommendation to reduce poverty
What is a major challenge in economic research?
Maintaining all variables constant except one
What is the term for the scientific approach used in economics?
The Scientific Method
Which branch of economics focuses on international trade and finance?
International Economics
What is the term for the part of economics that examines the economic activities of government?
Public Sector Economics
Which of the following is NOT a step in the scientific method used in economics?
Making value judgments
What is the term for the branch of economics that studies the policies that promote economic development in less developed countries?
Developmental Economics
What is the primary focus of the social science of economics?
The study of how individuals, businesses, governments, and other organizations make decisions to allocate scarce resources
What is the core challenge in economics?
Scarcity
What is the primary economic question of deciding which goods and services should be produced?
What to produce?
What branch of economics focuses on the overall functioning of an economy?
Macroeconomics
What is the result of the dichotomy between infinite desires and finite means?
The economic problem of how to distribute resources efficiently
What is the role of individuals, governments, and societies in economics?
To make decisions about resource allocation
What is the primary focus of microeconomics?
The decisions of individuals and firms
What is the primary economic question of deciding who will receive the products and services created?
For whom to produce?
What is the result of the continuous decision-making process in economics?
The efficient allocation of resources
What is the primary goal of economics?
To distribute resources efficiently
What is the fundamental reason behind the economic problem?
Finite resources
What is the primary focus of microeconomics?
The decisions of individuals and firms
Which of the following is NOT a primary economic question?
At what price to sell?
What is the result of the continuous decision-making process in economics?
Inefficient allocation of resources
What is the main objective of economics?
To distribute limited resources efficiently
What is the relationship between human wants and resources?
Human wants are unlimited, and resources are finite
What is the primary focus of macroeconomics?
The overall functioning of an economy
What is the main challenge in making decisions about resource allocation?
Scarcity of resources
What is the primary goal of individuals, governments, and societies in economics?
To allocate limited resources efficiently
What is the primary reason for the existence of the economic problem?
Finite resources and unlimited human wants
What is the primary focus of Labour Economics?
The supply and demand for labour and its effects on wage levels and employment
What is the main difference between positive and normative economics?
Positive economics is descriptive, while normative economics is prescriptive
What is the main challenge in economic research?
The unpredictable nature of human behaviour
What is the purpose of economic models?
To help understand and predict the interactions and outcomes of economic actions
What is the approach used in economics that involves developing hypotheses based on existing theories and testing them against empirical data?
Deductive reasoning
What is the primary focus of Environmental Economics?
The economic issues with environmental implications
What is the main difference between inductive and deductive reasoning?
Inductive reasoning involves observing data to develop new theories, while deductive reasoning involves developing hypotheses based on existing theories
What is the primary focus of International Economics?
International trade and finance
What is the main goal of the scientific method in economics?
To understand and predict economic phenomena
What is the primary focus of Developmental Economics?
The policies that promote economic development in less developed countries
What is the underlying assumption that drives the discipline of economics?
Resources are finite
Which economic question deals with the allocation of resources based on the available financial capacities?
What to produce?
What is the primary focus of microeconomics?
Analyzing the decisions of individuals and firms
What is the fundamental economic problem that arises due to the discrepancy between human wants and resources?
Resource allocation
Which branch of economics addresses broad issues like unemployment, inflation, and economic growth?
Macroeconomics
What is the primary goal of individuals, governments, and societies in economics?
Satisfying unlimited wants and needs
What is the result of the continuous decision-making process in economics?
Resource allocation
What is the primary challenge in making decisions about resource allocation?
Balancing competing needs
What is the relationship between human wants and resources?
Wants are unlimited, resources are finite
What is the core concept that necessitates choices about resource allocation?
Scarcity
What is the primary role of economic models in economics?
To test hypotheses and make economic predictions
Which of the following is a characteristic of normative economics?
It involves value judgments and subjective perspectives
What is the primary challenge in conducting economic research?
The difficulty in maintaining controlled experiments
Which of the following is a step in the scientific method used in economics?
Formulating a question and then conducting investigations
What is the primary difference between deductive and inductive reasoning in economics?
Deductive reasoning involves developing hypotheses based on existing theories and testing them against empirical data
Which branch of economics focuses on the economic activities of government?
Public Sector Economics
What is the primary goal of economics as a social science?
To understand and predict economic phenomena
Which of the following is NOT a characteristic of positive economics?
It involves value judgments and subjective perspectives
What is the primary role of economists in understanding economic phenomena?
To develop hypotheses based on existing theories and test them against empirical data
Which of the following is a challenge in testing hypotheses in economics?
Maintaining controlled experiments
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